Thanks for the replies. Wow... there really are different ways to raise a puppy. I appreciate the variety of viewpoints and suggestions given here. One common theme amongst all responses is the unconditional love and patience required for our babies. I get that.
I have much love and much patience within me to offer my Maxi. I had a momentary lapse and resorted to hitting my baby out of frustration - to which I regret. I plan to grow from it and no, I will not beat myself up about it anymore. That was yesterday. It's a new day.
Most of the basic suggestions given, I already put into practice. The praise, the rewards... the downplay of his pee and poo on the carpet, puppy proofing, watching him, feeding him and expecting elimination 20 mins. later... Also, for the record... he only has free run of the house when I, my husband or son are home. And he is CONSTANTLY WATCHED. We have altered our lives -- for him. My son comes home between classes to give him his meds and let him out of the crate and we go home promptly after work and don't make plans without factoring Maxi in. Actually, at home, he prefers to be wherever I am... and is always underfoot. He just started this new thing of sneaking off to the kitchen. He is lavished with attention by all family members. He has toys galore... and yes, he does chew my furniture, my magazines, my desk, anything he can get his teeth on. It doesn't bother me at all. For HIS safetly, we tell him "No Bite!" -- we remove the items and we replace them with his toys and tell him "Good Toy!" or "Good Boy" whenever he plays with his toys. Maxi is very loved and very cared for. In the matter of my "losing it" on him about peeing on my bed... (someone here nailed it) -- my expectations were way too high!
Actually, Maxi was paper trained by the very first week he came home with us... and has since been declining. I also took the time to get him to open up. I think the seller (Ivan) had not socialized him and kept him in the crate for too long because he would cower anytime anyone came near him. He has done a 180 on this regard and he is one of the PACK (our pack)!!! He loves his life!!
THANK YOU ALL SO MUCH FOR SHARING your housebreak stories because it has helped me to realize what to expect. If I know what to expect... I can be better prepared to deal. For example... since yesterday's incident... Maxi peed on the carpet twice and he peed on the bed again last night. I silently cleaned it up, as USUAL. Understanding that this is going to happen... I have resolved to be patient and have also resolved that I am willing to deal with it because he is worth it.
This morning, I tried a different strategy that I read about. I tossed my laundry all over my apartment floor in the spaces he usually pees. I read that this basically marks the territory as "mine" and he will not go there. You don't need to do this forever... just until he gets in the habit of using the paper. I chose clothes that I wouldn't mind too much if they were soiled. Well, he peed on the paper this morning! Coincidence? Who knows... lol. Minutes later.. he found a nice clean spot (under my desk chair) and made poop. lol. 1 step forward... 2 steps back! Oh well! I am learning to lighten up because there is nothing worse than the image of my Maxi cowering and fearful.
I think it's going to take some serious work to repair the damage I have done because I still see fear in his eyes at certain random moments.
As to the suggestion to get a play pen -- I think it's too late for that. Maximus would JUST DIE if we kept him in a pen!!! Unless... the suggestion is to do this when we're not home (instead of the crate)... this I would consider.
It's important to note that my apartment is VERY SMALL (NYC)... VERY SMALL... and WHEN WE'RE HOME... we close all room doors (2 bedrooms and bathroom)... so he basically has the run of the living room (that's his room... where his crate, food and wee pad are), the foyer and the kitchen. Most of you probably have laundry rooms larger than my living space.
*Also, when no one is home he is put in his crate! He does not roam the house unattended... and our home IS puppy proofed! We're constantly puppy proofing as we discover the new things he likes to explore!
I think he likes to go in the kitchen because it's the only space in the house with tile (and the bathroom). All else is carpeted. I'm actually planning on buying 4 tiles to place in a spot on top of the carpet so that he can lay on it when he wants.
As for the gate... thanks for the tip! Maxi does not wear a collar in the house... and I bought him a harness for when we go outdoors. However, we can't go out until he is better. I don't want him to pick up any viruses while he is not immunized... and he is 3 mos. 3 weeks for someone who asked. The only reason we don't have the gate as yet is because the cost of the weekly visits to the vet, his meds, and his supplies have set us back considerably... it's only been a month and I have already paid for my dog 3x's over. I have "Ivan" to thank for the exhorbitant vet expenses

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I also want to especially thank those that PM'd me with kindness, compassion and great advice. Hugs to those that defended me here on this thread. It helped take the sting out of some of the harsh responses. I do appreciate all the feedback however. Most of the harsh remarks were accompanied by good advice... so I will focus on that!